Commented [SR1]:

BUSINESS TRANSFORMATION
Business Transformation ROLL
roll out OUT
approach
APPROACH
McDonalds
11/3/2014

11/3/2014

Version No. 1.0

Authorized by IGate

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Response to Request for Clarification Request
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© 2012 IGate Technologies Limited. Strictly private and confidential. No part of
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permission of IGate Technologies Ltd.
Table of Contents
Executive Summary .................................................................................................. 3
Highlights of IGATE’s Solutions ................................................................................. 5
Executive Summary
As a consulting and business services partner for McDonalds group since
2007, IGate is delighted by this opportunity to contribute to McDonalds’s
enduring business resilience and success in Americas, Europe and Asia
Pacific Zone.
The GFIT Convergence program can be the catalyst to achieve these
objectives, if a Business Value Realization approach is adopted. By Setting
the Direction right, involving an empowered group of business
stakeholders, carefully designing the details of the program, and of course
successful execution of rollout, the stated Business & IT objectives can be
achieved.
Having gone through this RFI, we see McDonalds doing several things right:

 Opting to achieve the convergence of different ERPs to Oracle R12,

given considerable EBS foot print in the Zone, in a clustered approach.
 Making the implementation of a single Standard Chart of Accounts a
pillar of the program.
 Intending to design and implement standard enterprise level processes
for the Zone covering all major business areas.
 Focusing on a solution using standard ERP processes & best practices,
conscious effort to limit essential variations.

From our experience, several additional areas will need focused attention for program success:

 A business footprint and core process assessment for the entities across the Americas/Europe and Asia
Pacific Zone to assess commonality in order to create a Zone blueprint and a standard process library with
strong participation from Business stakeholders.
 A Business driven template governance mechanism to make Core and Non-Core choices, Core process
validation integrating best practices and to decide on essential variations for the Non-Core processes.
 A tailored Organizational Change Management approach to ensure solution adoption by each country and
facilitate their transition towards the desired future state Zone organization model.
 A Value Realization (and not expediencies) based evaluation and tracking of all key Program Decisions
made at a Zone and country level, to ensure each decision generates measurable business value, which
is in line with key enterprise performance metrics needed to deliver on GFIT Program objectives.
 An empowered Business Decision Making Group including Senior Executives to govern the Convergence
Program.

Why is setting the direction critical for program success?

In IGate experience, we have seen several of our Retail clients succeed in large ERP programs spanning NA,
Europe and Asia and we have also seen programs that achieved partial results or failed miserably, often for
reasons that are deeper than just the quality of the ERP solution delivered.
The Convergence program, when successful, can become an ROI multiplier, by enabling additional sources of
operational efficiency and cost savings, for example via business Shared Service Centers supporting the
entire Zone for operations like Finance and Operations Control, Order Processing, Vendor Management,
Payments Processing, etc. at optimized cost.

IGate approach for the Transformation program Roll out in a nutshell:

 We propose a 3 months Set Direction phase to ensure the program gets it right from the start. At the end of
this phase we will have the baseline KPIs, program roadmap, roll out sequence, harmonized process
blueprint, foundation for business change and training strategy, process map and value levers.
 This will be followed by XX months of the build phase of the Zone ERP core template; considering all the
retained modules.
 Then, we propose to choose implementation country in each roll out for the new core template with
approved essential variations and required integrations, with acceptance, training and go live in agreed
schedule..
 We will conduct 5 Waves of Roll out for all other countries in 60 Months. At this stage we assumed roll out
waves in sequence, however once we finalize the modules and complexity for each country we could
potentially execute rollouts faster.

5 reasons why we believe IGate has the right aptitude and the right attitude to be your partner on this
Convergence program:
1. IGATE knowledge of McDonalds’s business operations and core processes acquired over the past 7
years. We will actively apply our functional knowledge of and Welding lines of business to this project,
share best practices and ideas that can work for you.
2. We bring considerable Business Transformation experience, having delivered large programs across the
world. We take end to end responsibility on our programs; delivered by an integrated team covering
Business Consulting, Process expertise, Enterprise Architecture, ERP, EAI, BI, Organizational Change
Management and Program Management streams and also support/transition streams.
3. We have major presence in USA and Canada, Europe and Asia Pacific with offices We have delivered
similar Transformational programs and rollouts covering Americas region and we can deliver this program
without any operational hitch.
4. IGate will share the risks in an outcome based model, besides quality and on time outcomes, we will for
example, tie part of our revenues to the achievement of the 80/20 objective: 80% standard processes and
20% customization for the ERP solution in each rollout country.
Call for action:
In order to progress with you on the Program approach, solution design and detailing:
 We propose a set of workshops on the following themes for the Set Direction phase to get to project launch

Voice of Business Finance & Operations Control Procurement & Vendor Management
SCOA impact and implementation Stakes, vendor portfolio, catalogue,

Business and Functional Stakes, Guiding
Stakes, improvements, efficiencies, SSC consolidation, cost reductions, SSC
principles for Business Blueprint & Core

Solution Architecture Infrastructure Build & Run Delivery Model

IT stakes, Guiding principles for Core-Non Current TCO, Instance strategy, future AIT / Partner workload sharing, Local
Core Processes, Template Governance, Architecture, Options (location, cloud…) country support, Future IS&IT
Local Integration Stakes, improvements, efficiencies, SSC organization

 IGate is ready to deploy a 6 member’s core team of Program Manager, Business Architect, Oracle Solution
Leader, Infrastructure Architect, Data/BI Architect and Organization & Change Management expert to help
you set direction and design the details right away.
Highlights of IGATE’s Solutions

We have prebuilt process frameworks and comprehensive library of all the deliverables required for a major
business transformation. This library includes:

 Methodologies – Detailed approach to delivering a value-based business transformation

 Reference Libraries – Metrics, Processes, Personas, Maturity Models
 Sample Deliverables – Multiple sample deliverables
 Templates – Best practice templates from the industry
 Experts – Access to industry, functional, and technical subject-matter experts, and experts who have
worked for McDonalds in other Zones before.

IGate proposes to carry out a Global Solution which will create the Global Processes, Data and Report
templates and standards necessary for subsequent rollouts to McDonald facilities in the Americas and world -
wide. The Global Solution will be followed by pilot site implementations and then wave based rollouts. The
Key Elements for the program are as follows:
A. Functional Tracks: To support development of global processes and standardized templates for
different process areas, business intelligence and financial consolidation
B. Phases: Different project phases such as Set Direction, Design, Build, Roll-out leading to the
development of Global Design and Standards and Templates, followed by Rollouts and Production
Support
C. Project Execution Tracks: To support project management, master data management, change
management, training management, configuration development
A. Functional Tracks
To give you an interesting point of reference, we have summarized the processes of McDonalds Worldwide
business covering business lines and in terms of process areas that are close to standard industry practices
(therefore likely to be out of the box in ERPs) or are quite specific to McDonalds’s business and therefore
may need varying levels of customization.

Acquire to Retire Hierarchy Master Data

Procure to Pay Management
Bill to Collect Transactional, Close and
Book to Report Management Reporting
Planning/Projections
B. Phases
Our approach to developing a Global Design consists of the following four phases

 Set Direction - Assess, Envision & Roadmap

 Design - Architect, Validate & Design
 Build - Build, Test & Integrate
 Roll-out - Stabilize, Decommission & Improve

Communication Plan

We will create a high-level communication plan that provides an overview of activity by project phase, and
then use a rolling 30-day plan to manage the detailed work. Throughout the program, we plan
communication activities to achieve specific objectives, tailor the approach to the needs of different
audience segments, select the best media and messenger for the purpose and audience, and then evaluate
effectiveness.

During the Conference Room Pilot sessions (CRPs) the Change Management Team works with the
Process/Functional Teams to document the ‘as-is’ and high-level ‘to-be’ processes, determine what the
changes are likely to be, who will be affected and to what extent to understand the change impact on
McDonalds’s personnel to gradually refine the Change Impact Analysis.
CRN members are the CM Team’s ‘boots on the ground’ and are involved in most of the activities related to
preparing the McDonalds organization for the change. The Network will have several major purposes
including but not limited to:
  Providing a two-way communication conduit between the project team and the stakeholder
organization; conducting Communication Events
 Championing the transformation initiative and leading the change conversation within the
stakeholder organization;
 Planning readiness preparations required for success, marshaling resources to execute the plan, and
monitoring performance vs. plan for the stakeholder organization;
 Collaborating with the project team to help resolve stakeholder issues;
 Assessing readiness (e.g. conduct Readiness Assessments) and ensuring that additional resources are
directed to problem or high-risk areas;
 Managing assigned impacts and risks;
 Participating in User Acceptance Testing;
 Participating in Job/Role Mapping;
 Vetting and testing Training Materials;
 Delivering End User Training
 Providing first-line support to end users during go-live

Roll Out Approach

For a large enterprise with multiple lines of business, footprint in multiple countries and having disparate
systems, the determination of ERP rollout sequence warrants careful diligence as well as tradeoff
considerations across several parameters. The Global Design phase at McDonalds will be followed by a pilot
implementation at a representative site and then the Design will be rolled out to rest of the sites. There
could be many options and sequences possible for rolling out the R12 solution to individual sites. Based on
the information provided in the RFI and our experience in similar engagements, we discuss a few options
here.

Wave Based Rollout Strategy:

In order to achieve economies of scale and faster value realization, IGate recommends that McDonalds
follow a ‘Wave Based’ rollout strategy after the pilot implementation for implementing R12 in the rest of its
sites in the Americas.
The following are some of the benefits of the Wave Based Rollout Strategy:
 Share the same project plan and cutover plan across divisions/sites
 Shared implementation team across the divisions
 Project management effort can be shared across the divisions in a single wave
 Oracle Instance shared by the divisions in a single wave
 Development, test instances maintenance cost shared
 Feedback mechanism to enhance the implementation process
 Sharing of the common issues from one wave to the other
 Combining the execution for smaller sites
 Combine similar sites that are close geographically for CRP, SIT, UAT cycles
Rollout Clustering Considerations:

The following are some possible consideration for grouping sites into each Rollout Wave. This is only an
indicative and not an exhaustive list.

Considerations for grouping sites Based on Geography:

 Higher degree of similarity in regulations and statutes
 Higher degree of similarity in business processes
 Possibility of large pool of shared suppliers
 Scope for shared services in certain functions
 Similarity in language and culture
Considerations for grouping sites Based on Similar Legacy Systems:
 Retire similar legacy systems and interfaces thereof
 Common data extraction scripts can be used since extraction is from similar systems
 Common approach to data messaging and template mapping
 Leverage common interface development
Considerations for grouping sites Based on Lines of Business:
 Manage risk profile by starting with rollouts on low- risk or low- growth lines of business
 Some lines of business might have larger module scope than others
 Some lines of business might operate in a Projects environment while others not
 Some lines of business mean a wider location scope, while others less